Some people use car loans or car title loans interchangeably which is wrong. The name might seem similar at one glance, but there is a difference between these two terms. In this blog, we will discuss the difference between an auto loan and a car title loan. So, without further ado, let’s begin!
What is the Difference Between Auto Loans and Car Title Loans?
An auto loan is a loan raised to purchase a vehicle. However, the title of the vehicle is used as collateral like in a car title loan. On the other hand, title loans are different from auto loans. They are raised to purchase anything and to meet the urgent requirements. Title loans, or car title loans or auto title loans use automotive vehicle title as collateral that acts as a security for the loan.
Funds from auto loans are specifically used to buy a vehicle and it seems like a traditional loan that is raised with a specific purpose of buying a vehicle. On the other hand, funds from car title loans are used for various purposes mainly to meet urgent requirements like an unexpected medical emergency, meet daily expenses in case you have lost the job, credit debts, and more.
If you are also ones who is struggling due to some financial crisis and need urgent cash, you can consider taking title loans. 1st Capital Title Loans is one of the renowned agencies that provide car title loans to all those who are in a financial crunch and need urgent help. You can immediately contact us.